My biz is about to receive its first bit of revenue after two years... The money will arrive in the form of a check for approx. $14,000. Do I absolutely have to report this when I deposit the funds...because it's more then 10 G?
2006-07-12 01:45:42 · 7 answers · asked by amplioprado 1 in Business & Finance ➔ Taxes ➔ United States
Is there anyway I can avoid having the bank report the money to the IRS, too...? Like break the check up somehow--into amounts under $10,000--before it's deposited...? Either way, I suppose the agency issuing the check will also file info with the IRS, no?
2006-07-12 09:07:45 · update #1
A currency transaction report (FinCEN 104) is a banking form used in the United States to assist in the prevention of money laundering. It came into existence with the passage of the Currency and Foreign Transactions Reporting Act, better known as the Bank Secrecy Act (BSA), in 1970.
A CTR is filed by a bank teller upon a currency transaction exceeding $10,000 by a person in a single banking day. A bank employee who processes such a transaction must complete a CTR immediately following the transaction and have their supervisor review it. The forms must be completed and filed on each deposit, withdrawal, currency exchange, or cash wire transfer over the $10,000 limit. Multiple transactions totaling more than $10,000 of currency in one banking day must be counted as one transaction, and reported accordingly. Used in this context, currency means cash, coins, or other monetary instruments that transfer ownership solely by transfer of physical possession of the instrument.
When the first version of the CTR was introduced, the only way a suspicious transaction of less than $10,000 was reported to the government was if a bank teller called an agent and provided the information. This was due, primarily, to the concern by financial institutions about the right to financial privacy. On October 26, 1986, with the passage of the Money Laundering Control Act, the right to financial privacy was no longer an issue. As part of the Act, Congress had stated that a financial institution could not be held liable for releasing suspicious transaction information to law enforcement. As a result, the next version of the CTR had a suspicious transaction check box at the top. This was in effect until April 1996 when the suspicious activity report (SAR) was introduced.
OK, so the bank won't report the money to the IRS, but what about the people paying it to you? What is the money for? If it is another business paying you, chances are you will receive a 1099 in the mail at the end of the year from them. This form is sent to both you and the IRS reporting how much money was paid to you. There is no way around it
2006-07-13 13:36:43 · answer #1 · answered by accountant 3 · 1⤊ 0⤋
The bank is responsible for reporting all transactions over 10,000 regardless of the transaction being cash or money order. The banks reporting of the deposit over 10,000 has absolutly nothing to do with an effect on your business unless (1) you are suspect in something unlawful or (2) you don't plan on reporting the monies as income in your biz. Either situation can spell big problems for you. Make the deposit and be sure you report the business income on your proper tax forms. Talk to an accountant.
2006-07-12 08:58:16 · answer #2 · answered by SOAPY 1 · 0⤊ 0⤋
You don't need to report it because the bank will do that for you; you must declare the amount to the Internal Revenue Service but you can also use a percentage of depreciation against that amount when you file your returns. Your tax will depend upon the total of your capital gain.
2006-07-12 08:49:54 · answer #3 · answered by cmpbush 4 · 0⤊ 0⤋
It depends on what the check was for. Did you invoice someone for that amount? Did you borrow the money? Best advice is to call your CPA. Hiding income will really jack you up with the IRS.
They ALWAYS FIND OUT !
2006-07-12 08:52:08 · answer #4 · answered by Beaumeader 3 · 0⤊ 0⤋
The bank will do the reporting for you. As for reporting it for tax purposes, you definitely have to report it, but if its the first in two years, you should have some good NOL's to offset the income.
2006-07-12 08:51:11 · answer #5 · answered by extra_37 4 · 0⤊ 0⤋
Open a Swiss Bank account.
2006-07-12 08:48:38 · answer #6 · answered by Cali Dude 4 · 0⤊ 0⤋
No..It is only cash tansactions over $10,000 that are reported..Checks are nothing
2006-07-12 08:47:54 · answer #7 · answered by dwh12345 5 · 0⤊ 0⤋